Flexible, Hybrid, and Green will be the primary office theme for 2023 said the latest Colliers report. It also stated that these trends would drive up the demand for commercial real estate. This means that the sector has left the worst behind and can expect a bright future.
During 2023, green financing is also likely to drive major investments since domestic and offshore investors are seeking Grade A projects that are ESG (Environment, Social, and Governance) compliant. Hence these demands will be shaping the future of the corporate real estate market and the coworking space in Hyderabad and other metro cities.
IT Companies To Shoot Up The Demand For Flexible Spaces
At the end of 2022, India witnessed leasing of 50 million sq ft, of which 14% was accounted for by coworking spaces in Hyderabad and other metro cities in India. It is said to be the highest in any year. The reason being the onset of a global recession, layoffs, and increased inflation. As a result, the demand for flexible workspaces is likely to increase since they offer flexible lease terms and also help in cost control.
Hybrid Models To Evolve
In 2022, we saw the hybrid model picking up. While in 2023, we are seeing the occupiers creating policies and defining hybrid work culture even more clearly. According to the research done by Colliers in 2022, 63% of employers in India are currently working in hybrid mode and are more likely to carry on with this working arrangement with employees coming to the office for at least 2-3 days a week.
More Green Properties To Enter The Real Estate Market
The number of green-certified buildings has drastically increased in 2022 as compared to 2010. The listed developers are looking to increase their green portfolio as part of their short-term ESG (environment, social, and governance) goals and increase the usage of renewable sources of energy.
It is estimated that roughly 60 million sq ft of additional green Grade A stock has received pre-certifications or is in the process of getting green-certified in Hyderabad, Pune, and Delhi NCR.
A Boom In Flexible Space Investments By VC Firms
The recent trend of office spaces for rent in Hyderabad and other cities has attracted venture capitalists. Also, the market sector is exhibiting healthy liquidity in the coworking segment which in turn has enticed greater investments compared to other segments. As a result, a steady and gradual growth in the commercial real estate market will automatically push the rise of coworking spaces as well.
Commercial Real Estate Extending Quickly As Hybridity Rises
Post-pandemic, many companies have become alert and are devising plans to operate their business more sustainably. Due to this reason, the hybrid approach has become a norm h. This circumstance has pushed companies to downsize their traditional office spaces and move towards coworking spaces in Hyderabad and other metro cities. Since corporates are making their move to flexible spaces, coworking players continue to enlarge their footprint across the country.
As upcoming office trends move towards green, flexible, and hybrid environments, it would be interesting to observe the growth of coworking spaces in Hyderabad and other metro cities. Traditional office spaces are steadily becoming an obsolete concept for upcoming startups with flexible workspaces likely to take over in the next few years.
Coworking spaces will become mainstream and will rule the corporate real estate market by offering cost-efficient services that help businesses to set up their space anywhere with minimum investment. iSprout is one of the leading coworking spaces in Hyderabad that offers dedicated desks, conference rooms, virtual offices, and even private office spaces to businesses of any size. In addition, we have an in-house team of professionals to support your enterprise to increase overall business efficiency.